Cadence Design Systems Inc. (NASDAQ:CDNS) saw a downside of -1.73% to $228.43 after subtracting -$4.01 on Tuesday. The 5-day average trading volume is 1,192,880 shares of the company’s common stock. It has gained $233.70 in the past week and touched a new high 3 times within the past 5 days. An average of 1,788,385 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,045,140.
CDNS’s 1-month performance is -2.56% or $1.55 on its low of $226.42 reached on 08/02/23. The company’s shares have touched a 52-week low of $138.76 and high of $248.16, with the stock’s rally to the 52-week high happening on 07/20/23. YTD, CDNS has achieved 42.20% or $67.80 and has reached a new high 33 times. However, the current price is down -7.95% from the 52-week high price.
Insider Transactions
CDNS stock investors last saw insider trading activity on Aug 03.ZAMAN ANEEL (Sr. Vice President) most recently sold 271 shares at $227.85 per share on Aug 03. This transaction cost the insider $61,747. Sr. Vice President, Cunningham Paul, sold 1,000 shares at a price of $231.43 on Aug 01. Then, on Aug 01, Corporate VP, General Counsel Nisewaner Karna sold 100 shares at a price of $231.43 per share. This transaction amounted to $23,143.
Valuation Metrics
CDNS stock has a beta of 1.04. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 16.36 while the price-to-book (PB) in the most recent quarter is 21.19, with the price to cash flow ratio at 54.83.
Cadence Design Systems Inc.’s quick ratio for the period ended June 29 was 1.30, with the current ratio over the same period at 1.40. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.22, while the total debt to equity was 0.22. In terms of profitability, the gross margin trailing 12 months is 89.40%. The trailing 12-month EBITDA margin is 33.86% while for the period ending June 29, Cadence Design Systems Inc.’s operating margin was 28.80%. The firm’s gross profit as reported stood at $3.19 billion against revenue of $3.56 billion.
Earnings Surprise
For the quarterly period ending June 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -6.43% to $221.12 million, while revenue of $241.8 million was -9.35% off the previous quarter. Analysts expected CDNS to announce $1.18 per share in earnings in its latest quarter, but it posted $1.22, representing a 3.40% surprise. EBITDA for the quarter stood at more than $335.68 million. CDNS stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 2.25 billion, with total debt at $648.55 million. Shareholders hold equity totaling $271.79 million.
Let’s look briefly at Cadence Design Systems Inc. (CDNS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 07 August was 37.48% to suggest the stock is trending Neutral, with historical volatility in this time period at 16.07%.
The stock’s 5-day moving average is $229.44, reflecting a -2.22% or -$5.19 change from its current price. CDNS is currently trading -1.48% above its 20-day SMA, +12.57% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +1.76% and SMA200 by+48.61%.
Stochastic %K and %D was 16.28% and 14.55% and the average true range (ATR) pointed at 5.55. The RSI (14) points at 42.86%, while the 14-day stochastic is at 9.29% with the period’s ATR at 5.72. The stock’s 9-day MACD Oscillator is pointing at -1.59 and -4.27 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Cadence Design Systems Inc. (NASDAQ: CDNS), Stifel upgraded it to a Buy rating. They previously had a Hold rating on the stock. Analysts offering their rating for CDNS stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate CDNS as a “sell,”, while 2 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 3 rates the stock as overweight while 11 have offered a “buy” rating.
What is CDNS’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $240.00 and a high of $300.00, with their median price target at $264.50. Looking at these predictions, the average price target given by analysts is for Cadence Design Systems Inc. (CDNS) stock is $263.09.
